New taxes to take effect next year

Looking back on the previous campaigns of President Aquino, he guarantees not to compel for new taxes during his administration if he will be elected.

Last Tuesday, Malacañang said that the rule of No new taxes will only apply until the end of year 2011. The burden of having new or increasing tax rates will depend on the fiscal condition of the country during Aquino's term.

Presidential Spokesperson Edwin Lacierda said that the policy on No new taxes is not yet final. However, one thing is for sure, there is no increasing of taxes or new taxes to come this year.

Raising the taxes for the coming years can be considered by President Aquino, but is still dependent on the recommendation of economic managers and the country's fiscal health, according to Lacierda.

"So far, we have no plans of increasing taxes and we have a good play of revenues and deficits" said Lacierda. However, he refused to give details on the bills that add higher taxes on tobacco and alcohol. He just mentioned that the plan sounds good as it can shorten the multi-tiered system of sin taxes, but still, they do not see any bill being submitted soon. Also, Finance Secretary Cesar Purisma and Budget Secretary Florencio Abad has to be consulted first for their opinions regarding the bill proposing the increase in sin taxes. — ARA